Today's story is set in Poland: In Clean Hay, by Eric P. Kelly. It's anthologized in The Home Book of Christmas, but is also available (used) in an edition from 1953 illustrated by Maud and Miska Petersham. Kelly, who learned to love Poland as a soldier in the aftermath of World War I, won the 1929 Newbery Medal for his book The Trumpeter of Krakow. In Clean Hay was first published in 1940, when Poland was again at war. But there's no war in this story, just a family of children who want to make a little Christmas money with their szopka krakowska, or puppet theater telling the story of the Nativity. These puppet shows are still given today both in Poland and in Polish-American communities.
Above is a photo of a young Polish man holding a szopka; as you can see they are often quite elaborate.